5 Cost-Saving Strategies for Small Business Owners in 2025 | Fee Slayer
Is your small business feeling the squeeze of rising costs? You're not alone:
58% of small business owners cite inflation as their top challenge going into 2025. The good news? There are proven strategies to cut costs – without crippling your operations.
In this guide, we'll walk through practical cost-saving strategies every U.S. small business owner should know. Each strategy is actionable and based on real examples, expert advice, or tools that other entrepreneurs are already using to stay lean.
1. Drop Off Packages Instead of Paying for Pickups
Stop paying for carrier pickup fees if you don't have to. Major shippers like FedEx and UPS charge extra for scheduling package pickups from your location – fees that can add up quickly. Instead, drop off your shipments at the carrier's nearest drop-off point (e.g. UPS Store, FedEx Office, DHL drop box). Scheduling a home/office pickup often comes with a fee (for example, UPS on-call pickups cost around $4–$6 per pickup, or FedEx charges ~$13/week for daily pickup service).
Why does this matter? If you're shipping even a few packages a week, those pickup fees could be hundreds of dollars per year in unnecessary expense. Plus, drop-offs can be done on your schedule.
Example: FedEx explicitly advises small businesses to "use drop-off options to avoid pickup charges," noting that later drop-off times can be a lifesaver for last-minute shipments. These companies offer pickup services for convenience – but you're paying for that convenience with extra fees. FedEx drop-off guide.
Pro Tip: If you regularly schedule pickups due to volume, compare the costs of a pickup subscription or daily pickup plan versus the time spent dropping off. In some cases (especially for high volume shippers), carriers offer discounted or free scheduled pickups once you hit a certain shipping threshold. But for many small businesses, simply doing a daily or weekly drop-off run is the most cost-effective choice. As a bonus, you'll get out of the office for a bit of fresh air!
2. Use USPS for Lightweight Packages (and Leverage Shipping Aggregators)
Are you shipping small, lightweight packages using only UPS or FedEx by default? You might be overpaying for those light shipments. For packages under about 1 pound (0.45 kg), USPS is often the cheapest option. The Postal Service's First Class Mail parcel service (now folded into USPS Ground Advantage for packages up to 1 lb) is significantly cheaper than private carriers for lightweight deliveries – and it still delivers in about 1–3 days domestically. Many small
e-commerce businesses ship products like phone cases or T-shirts via USPS First Class to save money, since UPS or FedEx Ground would charge a higher minimum rate for those small items.
In addition, consider using shipping aggregator platforms or software to get better rates across carriers. Services like Pirate Ship, Easyship, ShipStation, Shippo, etc. allow small businesses to access pre-negotiated commercial shipping rates normally reserved for higher-volume shippers. For example, Easyship (a shipping rate aggregator) advertises discounts like up to 65% off USPS First Class Package and 50% off UPS Ground for its users.
Shipping aggregator benefits include: automatic rate shopping, label printing, and no monthly fees in many cases. In short, they make it easy to choose the cheapest service for each shipment without manually checking each carrier's website. And even if you prefer sticking with one carrier, the aggregated rate can be lower than what you'd get on your own.
Action steps: Audit your last month of shipments:
If you sent many packages under 1 lb via UPS/FedEx, compare the cost if you sent them via USPS First Class. The savings per package could be a few dollars each – which adds up over dozens of orders.
Sign up for a shipping software or aggregator (most are free to join) and input a sample shipment to see the available rates. You might be surprised that a service like UPS Ground Saver or FedEx Ground Economy (or a USPS option) is considerably cheaper for certain weights/zones.
Also, use USPS flat-rate boxes or regional rate boxes for heavy items going to distant zones – they can be a bargain if your item is small but heavy. For local deliveries, UPS Ground might beat USPS. The key is to compare options using technology.
3. Cancel Unused SaaS Subscriptions (Use a SaaS Management Tool)
Take a hard look at your monthly software subscriptions – you might be paying for apps or SaaS tools that no one at your company actually uses anymore. It's incredibly common: studies have found around 30% of SaaS spending in a typical business is wasted on unused or redundant services. These could be forgotten software trials that started billing, extra licenses for a tool after a team downsized, or overlapping services (like paying for two project management apps when one would do).
Reclaim this money by auditing and cancelling what's not providing value. One approach is to manually review your credit card or bank statements line by line for subscriptions. A more efficient approach is to use a SaaS management platform (often called "subscription cleanup" tools). For example, Cleanshelf – a SaaS management software – helps companies identify unused licenses and subscriptions. The software automatically flags when you're paying for seats or tools that haven't been accessed in months.
Other tools in this category include Torii, Zylo, Blissfully, Intello, and even certain expense management tools have subscription tracking features. If you're a very small operation, even personal finance apps like Rocket Money (Truebill) can find recurring charges for you to review.
Quick tips to cancel unused subscriptions:
Inventory all software: List out all SaaS products your business pays for (business email accounts, CRM, marketing tools, design software, data subscriptions, etc.). Don't forget annual subscriptions and those on personal cards.
Check usage: For each, determine if it's actively being used. Many SaaS have usage dashboards, or ask the team member in charge if it's still needed.
Consolidate and downgrade: Eliminate duplicate tools (do you need 3 different design tools?) and downgrade tiers if you're not using premium features. For instance, if you're on a premium plan but not hitting the limits of the free or cheaper plan, switch down.
Remember, those $10, $20, $50 per month tools add up. Five subscriptions at $20/mo each is $1,200/year.
4. Skip Premium Support Plans – Use Free Support Channels (Forums, Communities)
Be wary of paying for “premium” customer support add-ons with your software vendors or service providers. Many B2B services, especially in tech (cloud platforms, CRMs, etc.), will upsell you on dedicated support, training packages, or higher tiers for better support SLAs.
For example, Google's Enhanced Cloud Support costs $500/month (plus 3% of your spend) for faster responses, and many software companies charge 15-25% of the license cost annually for premium support contracts.
Ask yourself: Do I really need that? Most services offer a free basic support tier that includes knowledge base access, email support tickets (with reasonable response times), and community forums. Often, answers to technical questions can be found via a quick Google search, a post on the vendor's user forum, or by asking peers (e.g. on Reddit or Stack Exchange). There is a huge ecosystem of free help out there for most popular products.
Save by opting out: If you're being prompted to add a premium support package at checkout or contract renewal, remember that those costs cut into your margins. Many small businesses have reported realizing they never actually used the premium support they paid for. Unless you truly lack any IT know-how or your service is so critical that you need a guaranteed 1-hour response time, it's often safe to stick with standard support. You can always upgrade later if you find you need it.
5. Negotiate Credit Card Processing Fees (or Try Lower-Cost Alternatives)
Credit card processing fees can quietly take a big bite out of your revenue. If you simply use the default processors like Stripe, Square, or PayPal without question, you're likely paying around 2.9% + 30¢ per online transaction (or ~2.6% for in-person swipes) – those standard rates. On a $100 sale, roughly $3 goes to fees. Multiply that by hundreds or thousands of transactions, and we're talking serious money.
Negotiate or shop around for better merchant processing deals. Many business owners don't realize that processors will negotiate on rates once you have some volume, or that there are alternative providers with different pricing models that can save you money.
For example, if you're using Stripe and processing a decent volume (say >$10k/month), you can request a pricing review. Some Stripe users have successfully negotiated lower rates, especially if they can show an offer from a competitor. Stripe's website itself notes you can ask for a review if your volume is high. It never hurts to politely reach out and say, "We're evaluating our options because of processing costs – can you do better on the rate for us?" The worst they say is no.
Better yet, consider alternative payment processors or merchant account providers that offer interchange-plus pricing or subscription-based pricing. With interchange-plus, the processor charges you the actual card network interchange fee (which varies by card type, usually ~1.5%–2% for credit cards) plus a small fixed markup. This can be much cheaper than flat 2.9% if most of your customers use standard credit cards.
For instance, Helcim is a popular processor among small businesses because it uses interchange-plus with Helcim and has no monthly fee, and their added markup might be as low as 0.2% + 10¢ depending on volume.
If you invoice clients, consider offering ACH (Automated Clearing House) bank transfer payments as an option. It's the U.S.-based electronic network for processing payments between banks. While credit card transactions typically cost merchants 2.5–3%, ACH payments usually cost around 0.5% or are even free, making them a great way to reduce processing fees. Platforms like Stripe and QuickBooks support ACH at around 0.5% fee capped at a few dollars, way cheaper than credit cards for big payments.
Additionally, consider surcharging or cash discounts (if legally allowed in your state!). Some businesses add a small % fee at checkout for credit card payments (or give a discount for cash/check). This is a delicate balance because you don't want to deter customers, but it's become more common, especially for B2B or invoices (e.g., "3% convenience fee for credit card payments"). Make sure to follow card network rules and state laws on this, though.
Action steps for lowering processing costs:
Analyze your statements. See what your effective rate is (total fees ÷ total volume). If it's close to 3%, there's fat to trim.
Shop around. Contact at least two alternative processors (e.g., Helcim, a local merchant services rep, etc.) and get quotes for your volume and transaction mix.
Use it to negotiate. If you like your current system (e.g. Stripe for its simplicity or integration), let them know you've got an offer for lower fees – they might match it to retain you.
Optimize how you take cards. Ensure you're using address verification (AVS) and proper data when processing (some processors lower fees for transactions that meet certain security criteria). And avoid keyed-in transactions when possible (they have higher interchange).
Consider customer payment mix. Encouraging customers to use lower-fee methods for big invoices (ACH or check) can save a ton. You could politely mention "Pay by bank transfer to help us avoid credit card fees – it keeps our prices low."
By treating payment processing like the negotiable business service that it is, you can save on one of the least visible but significant expenses of running a business. Don't be afraid to play hardball – the payments industry is competitive, and your business deserves the best rates it can get.
Every dollar you save through smarter operations is a dollar you can reinvest in growth or add to your profit. Implement a few of these tips and you may find your cost structure leaner than ever.